Revenue of the company was up 17.4% at Rs 12,254.1 crore versus Rs 10,439.3 crore.
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var titStr=”;var editw=”; var typevar=”; var pparr= new Array(‘Monitoring your investments regularly is important.’,’Add your transaction details to monitor your stock`s performance.’,’You can also track your Transaction History and Capital Gains.’); var phead =’Why add to Portfolio?’; if(secglbVar ==1) { var stkdtxt=’this stock’; var fltxt=’ it ‘; typevar =’Stock ‘; if(lastRsrs.length>1){ stkdtxt=’these stocks’; typevar =’Stocks ‘;fltxt=’ them ‘; } } //var popretStr =lvPOPRHS(phead,pparr); //$ (‘#poprhsAdd’).html(popretStr); //$ (‘.btmbgnwr’).show(); var tickTxt =’‘; if(typparam1==1) { var modalContent = ‘Watchlist has been updated successfully.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //var existsFlag=$ .inArray(‘added’,newappndStr[1]); //$ (‘#toptitleTXT’).html(tickTxt+typevar+’ to your watchlist’); //if(existsFlag == -1) //{ // if(lastRsrs.length > 1) // $ (‘#toptitleTXT’).html(tickTxt+typevar+’already exist in your watchlist’); 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//$ .each(d.ac,function(i,v) //{ // accStr+=”+v.nm+”; //}); $ .each(d.data,function(i,v) { if(v.flg == ‘0’) { var modalContent = ‘Scheme added to your portfolio.’; var modalStatus = ‘success’; //if error, use ‘error’ $ (‘.mc-modal-content’).text(modalContent); $ (‘.mc-modal-wrap’).css(‘display’,’flex’); $ (‘.mc-modal’).addClass(modalStatus); //$ (‘#acc_sel_port’).html(accStr); //$ (‘#mcpcp_addportfolio .form_field, .form_btn’).removeClass(‘disabled’); //$ (‘#mcpcp_addportfolio .form_field input, .form_field select, .form_btn input’).attr(‘disabled’, false); // //if(call_pg == “2”) //{ // adtxt =’ Scheme added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //else //{ // adtxt =’ Stock added to your portfolio We recommend you add transactional details to evaluate your investment better. x‘; //} //$ (‘#mcpcp_addprof_info’).css(‘background-color’,’#eeffc8′); //$ (‘#mcpcp_addprof_info’).html(adtxt); //$ (‘#mcpcp_addprof_info’).show(); 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UltraTech Cement share price touched 52-week high of Rs 5,831.80, adding 5 percent in the early trade on January 25 after the company announced its December quarter earnings.
The company in the quarter-ended December 2020 posted consolidated net profit at Rs 1,584 crore versus Rs 711 crore in the same quarter last fiscal.
Revenue of the company was up 17.4% at Rs 12,254.1 crore versus Rs 10,439.3 crore.
Here are brokerage views on the stock and on the company post the December quarter numbers:
CLSA
Research house has kept outperform call and raised target to Rs 6,230 from Rs 6,000. The Q3 meaningfully ahead of estimates but cost pressure looms, while it was a strong Q3 results on higher volume & better profitability.
The rise in fuel costs is likely to weaken profitability. Company is our top pick among large cap cement companies. It has a limited upside due to near-term margin pressure & fair valuation, reported CNBC-TV18.
Prabhudas Lilladher
Company reported strong set of Q3FY21 earnings with 11% beat on our EBITDA estimates. Company successfully integrated acquired operations of Century cement (14.6mnt), JP associate (22.4mnt) and Binani cement (6.3mnt) within guided timeline and profitability. Backed by sound B/S (Net debt/EBITDA at 0.7x) and steady cash flows, company embarks on next round of growth with 19.5mnt of new capacities along with sizeable investment in high payback and environment friendly renewable power (WHR) to increase its share to 34% by FY24 from current 13% of overall power requirement.
Led by its dominant size (22% market share) and highly efficient operations, we believe that company stands out as the best candidate to play recovery in the sector. We reiterate buy with target price of Rs 6,100, EV/EBITDA of 14x FY23e.
Motilal Oswal
Company’s strong pan-India distribution network and preferred supplier status for key infrastructure projects places it well to tap into expected growth in both retail and institutional (non-trade) cement demand in India. While it is ramping up its under-utilized acquired capacities, it also has a strong pipeline of expansion projects that offers strong growth visibility.
We estimate a 14%/28% CAGR in consolidated EBITDA/PAT over FY20–23E, driven by a 7% volume CAGR and lower operating/interest cost. The valuation is reasonable at 13.4x FY22E EV/EBITDA, a ~ 20% discount to peer Shree. We value stock at 14x Dec’22E EV/EBITDA to arrive at target price of Rs 6,650. Reiterate buy.
Sharekhan
UltraTech continued to outperform on all major parameters during Q3FY2021, with infrastructure and urban housing demand picking up along with sustained demand support from the rural housing segment. Further, demand outlook is expected to remain strong for FY2022 and FY2023, with demand expected to outstrip incremental capacity addition.
Improving demand and limited capacity additions are also expected to maintain healthy pricing discipline in the sector going ahead. We have increased our estimates for FY2021-FY2023E, factoring higher volume offtake considering strong pick up in cement demand to sustain going ahead. We continue to maintain our Buy rating on the stock with a revised price target of Rs 6,700.
Dolat Capital
Company will continue to witness healthy operating cash flow (average Rs 93.5 bn/year) and free cash flow (average Rs66.8 bn/year) leading to further deleveraging (Net D:E of 0.01x in FY23E vs. 0.42x FY20). UTCEM, being the largest player in Indian cement industry is its biggest advantage coupled with 19.5 mtpa expansion augurs well for growth.
Thus, we maintain buy with an upward revised target price of Rs 6,724 based on 15x (in line with 5-year average) consolidated FY23E EV/EBITDA.
At 09:27 hrs UltraTech Cement was quoting at Rs 5,757.40, up Rs 222.60, or 4.02 percent on the BSE.
